Government expenditure on education and economic growth: a panel data analysis
Government expenditure on education and economic growth: a panel data analysis
Author(s): Mizanur Rahman, Tahsin Binta AnisSubject(s): State/Government and Education, Social development, Economic development, Fiscal Politics / Budgeting
Published by: Asociatia pentru Dezvoltare si promovare socio-economica Catalactica
Keywords: Public Expenditure; Fiscal Policy; Economic Growth; Resource Allocation; Public Policy; Expenditure on Education;
Summary/Abstract: The fiscal policy of the government determines the long-run economic growth through optimal decisions on government expenses. For robust economic growth and prosperity, efficient allocation of resources is a necessary condition. An efficient labor force will refer to high productivity and high economic growth. The main reason for expecting a link between education and economic growth is straightforward. Education certainly enhances efficiency, which increases productivity and is a precondition for long-run economic growth. This work attempted to find the correlation between public spending on education and economic growth and the magnitude of this relationship. In the analysis, panel data of 63 countries were chosen randomly from each continent from 1981 to 2010. This study also included other variables that impact economic growth, including inflation rate, unemployment rate, Foreign Direct Investment, total export, and capital formation. The study revealed a significant positive correlation between public spending on education and economic development.
Journal: Jurnalul Practicilor Comunitare Pozitive
- Issue Year: XXIII/2023
- Issue No: 2
- Page Range: 30-46
- Page Count: 17
- Language: English